UBA Records 35 Percent Growth in First Quarter Profit, Projects Stronger Performance in 2015
The Pan-African financial power-house, United Bank for Africa (UBA) Plc, has released its unaudited 2015 first quarter (Q1) results, showing significant growth in earnings and profits in the first three months of the 2015 financial year.
The results, which covers the period January to March 2015, show that the Bank witnessed a significant 22 percent growth in gross earnings to N83.1 billion as at March 2015 from a comparative figure of N68.1billion made in the first three months of the 2014 financial year.
Also the bank recorded an even higher 36% growth in profit before tax to N18.4 billion as at March 2015 compared to N13.5 billion as at March 2014. The bank’s profit after tax also grew by 35 percent to N17billion from N12.6 billion within the same period.
Phillips Oduoza, the Group Managing Director and Chief Executive Officer of the bank expressed his satisfaction on theBank’s great start to the year, despite the uncertainties that characterized the Nigerian economy during the first quarter of 2015.
“We witnessed what can best be described as a quantum leap in our profit and balance sheet drivers. Besides the significant growth in profits, I am also impressed by the 6 percent quarter-to-date growth in deposits and the low 1.6 percent Non-Performing Loans (NPL) ratio, which reflects our prudence. It shows our focus on both profit drivers and risks within our operating environment” Oduoza said.
Speaking on the operations of its African businesses, Oduoza said that they contributed over one-fifth of the group’s earnings in the first quarter. He expressed optimism of a more positive outlook as the bank’s Pan-African operations increasingly gain critical mass across the African markets.
“We remain focused on cross selling initiatives and niche market play, as we remain committed to building a leading Pan-African financial services franchise and delivering superior value to our shareholders.” Oduoza explained.
The significant growth in profit after tax means that the bank’s earnings per share at the end of the 2015 financial year is forecast to rise by 35% to N2.06 from N1.53, if the first quarter growth rate is sustained, while return on equity (ROE) is expected to rise to 24.8 percent from 22.1% within the same period, showing significant improvement in returns to shareholders.
Ugo Nwaghodoh, Group Chief Financial Officer (GCFO), UBA said the bank tapped into efficiency gains in its operations to boost profitability.
He said the bank has seen significant improvement in interest and non-interest incomes across all business lines as well as improvement on average yields on assets.
“We hope to sustain this impressive quarterly performance through the year especially with the recent upgrade of our core banking application which will drive operational efficiencies across the group” the CFO said.
UBA recently completed an upgrade of its core banking application, including its online banking platform which will lead to more stability, greater security and better user experience as well as improved process, faster turnaround time and robust customer relationship management.
United Bank for Africa Plc is one of Africa's leading financial institutions offering banking services to more than 8 million customers across 605 Businesses Offices in 19 African countries and three global financial centre’s. With presence in New York, London and Paris, UBA serves people and businesses across Africa by offering innovative products across all market segments. G iven its retail spread across the continent, it has become the bank of choice for most banking and related services among African and Africa related businesses.